Will The Budget Affect Your Fleet?

In recent news it is feared that since the announcement of the budget, fleets costs are only set to increase. One of the reasons behind this will be the increase in VAT in 2011 from 17.5% to 20%.

This increase will impact in areas such as purchasing new fleet vehicles. It is thought each vehicle which might be worth around £15,000 will now costs an additional £315 than before the budget announcement.

It is also thought that companies that purchase their own vehicles will be looking at an additional 2.5% costs but then will not be able to reclaim any of this if the vehicles are used for personal use.

Insurance premium tax alongside the above has risen by one percent which has the impact of increasing insurance premium taxes on fleets to six per cent.

There is concern that the increase to such things as insurance premium tax may mean and increase in uninsured drivers. And disappointingly when the budget was announced there was no mention of the introduction of the fuel stabiliser taxation measure.

Once again fleets need a way to reduce their costs as much as possible and it would appear vehicle tracking is to be a major player in this for fleets who do not have it already.